66% CEOs In India Consider Generative AI To Be Top Investment: KPMG Implementation of Generative Al yields significant benefits for CEOs in India including job creation (20 per cent) while CEOs globally see increased profitability (22 per cent) as the top benefit: KPMG 2023 India CEO Outlook
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As organizations look to harness the potential of Al, generative Al has become increasingly important due to a growing demand for customized content and advancements in Al algorithms. Focused investments in generative Al since the introduction of Al chatbots in 2022, comes with increased interest in generative Al among investors, researchers and developers. CEOs in India and globally are prioritizing investments in generative Al as a key competitive advantage for the future, with 66 percent CEOs India compared to 70 per cent in CEOs globally consider it as a top investment priority for their organization, said a report by KPMG 2023 India CEO Outlook. Implementation of Generative Al yields significant benefits for CEOs in India including job creation (20 per cent) while CEOs globally see increased profitability (22 per cent) as the top benefit.
Emerging/disruptive technology has emerged as a primary risk and one of the greatest threats to organizational growth for CEOs in India as well as globally. In the quest to mitigate these risks and challenges, CEOs in India continue to prioritize digital transformation - with 21 per cent CEOs in India compared to 22 per cent CEOs globally, agreeing to have taken strides in advancing digitisation and connectivity across the business, as their top operational priority over the next three years, the report added.
Despite ongoing economic uncertainty, Generative Al remains a crucial investment for CEOs both in India and globally who are looking to stay ahead of the curve. "Disruptive technologies such as generative Al present unparalleled business opportunities, but it also presents CEOs with substantial unknowns and business risks. Navigating this uncharted territory may feel unfamiliar and uncomfortable. Therefore, it is critical to separate valuable insights from the noise and even more essential for leaders to develop an effective strategic business approach to generative Al, that is tailored to their unique organization and use cases, so as to fully capitalize on the opportunity it presents," said Akhilesh Tuteja Partner and Head, Clients and Markets, KPMG, India.
"Technology is at a true inflection point. Al is the arrowhead that is driving real and tangible impact. In fact, 66 per cent CEOs in India and 70 per cent CEOs globally are naming it as a top investment priority. The question every leader is asking themselves right now is this: How can my organization seize the full potential of Al, while safeguarding the business, data, and employees? A customer centric approach coupled with an 'Al-first strategy will ultimately lead to Al success and the first step is to focus on strategic goals with a growth mindset. It's time to 'Reimagine', 'Reorient and "Redeploy' the Al strategy at every level of the organization to to help people become more productive, more creative, and more innovative," said Puneet Chandok CVP & President, Microsoft India and South Asia.
CEOs in India are worried about the potential risks generative Al could introduce and the ethical issues that may arise with the use. As many as 58 per cent CEOs in India compared to 57 per cent CEOs globally agree that ethical challenges are a significant obstacle to adopting generative Al within their organizations, while 56 per cent CEOs in India compared to 55 per cent CEOs globally cite implementation cost as a major barrier, contrary to this, 45 per cent CEOs in India compared to 50 per cent CEOs globally mention lack of regulatory guidance as a challenge in implementing generative Al. Generative Al - a double-edged sword, with the increasing adaptation of generative Al among organizations, the potential security risks come with this technology. Cybereriminals could exploit generative Al to launch highly convincing phishing attacks and breach systems, making it crucial for organizations to bolster their defenses against these emerging threats. While CEOs in India and globally recognise the potential benefits of generative Al in detecting cyber-attacks, they also acknowledge the potential risks associated with its use. Despite these concerns, a higher number of CEOs in India at 61 per cent compared to 52 per cent CEOs globally, feel confident in their organization's preparedness for potential cyber attacks.